← Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer
Mad Money w/ Jim Cramer 11/18/25
00:40:50
Listen to Jim Cramer’s personal guide through the confusing jungle of Wall Street investing, navigating through opportunities and pitfalls with one goal in mind - to help you make money. Mad Money Disclaimer
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- [00:00]
Commercial Narrator
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- [01:01]
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- [01:55]
Jim Cramer
Hey, I'm Kramer. Welcome to Mad Money. Welcome to Kramerica. Other people make friends. I'm just trying to save you a little bit of money. My job? Not just to entertain, but to put things like today into context because they're tough ones. So call me 1-800-73-CNBC or tweet me. Jim Cramer dip buying or buying merchandise that's on sale because you trust the market long term to deliver serious returns? The former is a bad name, criticized, constant, lack any rigor. The latter is considered both prudent and intelligent. And I share it. So on a day where the Dow tumbled 499s and P shed point 83% and the Nasdaq lost 1.21%, I'm going to tackle this issue of the difference between buying the dips and buying great stocks on weakness, even if they might go down further after you first begin to buy them. First. When I think of dip buying, I think of methodically throwing money at the S&P 500. The conventional wisdom in this business says you shouldn't own any individual stocks. They say you're better off sticking to index funds that mirror the market, even though there are a lot of stocks in that index that are better than others. As I write in how to Make Money in Any Market, the notion that you can't beat the market is quite Wait. Things have changed since we decided to go all in the decks all the time. You now have much of the information the pros have at your fingertips. I'm a pro. I know what you have. You can act on your curiosity and learn if, say, the stock of Apple may be right for you given how much you like the product. Your kids are on Instagram constantly. You love the NFL package on YouTube TV. There's nothing like Amazon Prime. It's not like the old days when nobody had any access to anything, including by the way, Intraday Prime Crisis. Now you can easily study and inform yourself about a Metta or an Alphabet or an Amazon. The world has changed from the days when index funds were the orthodoxy, something that happened after the dot com bust. These days you can use a sale like the one we are experiencing and I don't think it's necessarily over. We're not that oversold to pick up stocks of high quality companies that are outside the blast zone of the data center. You know what? You can even tiptoe into the data center world tonight. I'm going to spend a lot of time in the data center going for the broken stocks of companies that are doing just fine. As long as you don't do it all at once and as long as you buy small. Just as we do it for the CNBC Investing Club where I show you how to be patient and don't load up the boat at one level. Let's go over what I mean here using the method I outlined and how to make money in any market. I want to start with the toughest one, which is Nvidia that reports tomorrow. Now I have no idea what Nvidia will return. I have no idea what they're going to report whatsoever. I will say this though. Nvidia stock was at 212 on October 20th and now it's at 181 and change. I got an idea. I think you certainly aren't buying this one at the high the stock sells at just under 40 times this year's earnings, which is expensive. That is much more expensive the average stock. But Nvidia has a history of crushing the estimates, making it look much cheaper. In retrospect, it's at the intersection of accelerated computing and artificial intelligence has a new chip coming out that could be make AI a lot more useful. There's a clear roadmap. And while Nvidia's chips are expensive, CEO Jensen Huang always holds that there's a quick payback, even as we hear constantly that there isn't. What does this mean to me? Look, Nvidia remains the gold standard. It's indispensable if you want to keep up with the new industrial revolution. Doesn't mean it's a buy. Does mean it's intriguing if it gets hit when it reports. If you bought a little of the stock today, just enough so you have plenty of room to buy more reports a quarter that is short term unappreciated. Is that mindless dip buying or is it prudent purchasing versus where the stock was just four weeks ago? If you go slow and not all at once as I advise, I think you are being prudent. Or let's say you want to buy Amazon, which is at the heart of the data center blast zone and had been cautious in spending until the bond deal just launched. To me, Amazon's a company that doesn't spend unless it needs to, unless it has demand. So I'm confident in this company. I trust management. Amazon, a terrific quarter. Its stock set up to 258 at the beginning of the month. Now it's way down back to 222. That's by the way, down $10 today day you're buying a high quality company. Just blew away the numbers 36 points before below its highs because it raised money to build out something that it needs. In other words, I think this is a smart to buy on weakness situation, not mindless dip buying. Again though, you can't buy all at once. You buy small and then you get bigger as it goes down. Stocks, by the way, do get cheaper if they're good on the way down. Now let's keep going with how to make money in any market because it's really important. Because when I say how to make money in any market, we're talking about this market. Sometimes you just want to wait for the stock of a company that's made a significant change and then you get a chance to buy it at a cheap price because the market's throwing a sale. Take Kroger. Giant Giant food store, right. Giant Grocer. It opened almost unchanged today. Even as it did something radical. It surrendered much of its E Commerce delivery business to doordash, Instacart and Uber. It took a $2.6 billion impairment charge to account for the money it already invested in its E commerce infrastructure. The stock temporarily sold off in response people freaked out, giving you a nice discount before it recovered. Finished recession almost up 2% as people realized that Kroger is doing something smart here. I bet it goes higher again tomorrow. Great opportunity. How about Starbucks? The stock that we own for the charitable trust? We've been lagging into Starbucks at enticing price levels knowing that management's been saying all the right things about business. Stock opened the day at $83.61, dropped to $82.34 at a decent starter price. Temporarily though as the stock then closed above 83. Yesterday Alpha, parent of the red hot Google Gemini complex traded up to a new all time high of 293 and today it briefly fell to 278 before finishing just to it just under 285. You're buying a Buffett endorsed company with a thriving YouTube business spewing cash as its cloud business. You're getting it cheap. Getting it cheap because Wall street doesn't like how Alphabet's spending on data centers to meet demand. Today's sell off may have given you a great entry point to start buying it. Then there's one more household name we'll give you Apple. This stock traded up to 277 after blew away the quarterly estimate the end of last month. Today in the teeth of the sell off the stock at 265. I think that's terrific price to start a position in the company that initially I think is starting to show signs that its AI business is a really good idea because it's someone I think is going to pay them to give them what we're doing with with the different chats. I bring up this method, this small buy method with plenty of room between each purchase because in the book I recommend that you pick five stocks for a small portfolio of high quality companies. One speculative, the other's not and you use my cautious method to get started. You should try to go for some diversification, but it's not imperative if you have just two that are kind of similar. No more than that though. You should have some money in an index fund side by side because index funds are good, they're just not. The be all and end all index funds give you relative safety versus your individual stock portfolio, but the individual stock portfolio gives you potential for much more upside. Just don't venture into the realm of the 2 times leveraged ETFs or the 0 data Xperia options or any of the other clown shows that the regulator shouldn't have ever blessed, even as a DraftKings 14 parlay would likely be less risky and more lucrative. If you want to put money in the market via the index fund, you can and should put money in monthly. But if you get a sell off like this one, you've got my blessing to pull forward some of those future contributions and put them to work right now, perhaps even as early as tomorrow. The bottom line though, in a market like this, my favorite move is to buy small something out of favor that's way down from its highs. Ideally something that's just reported a stellar quarter and is getting zero credit for it. Now that's a sale worth attending if not nibbling outright to get started. As you never know if the market's done going down and you have to leave room to be able to buy plenty more if we get additional weakness. That's my method. That's what I'm sharing with you, Gregory in California.
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Caller Gregory
Gregory, Jim, so great to see you. And Lisa out in L. A recently.
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Jim Cramer
Really said the same thing. You and Lisa said the same thing, Gregory. She said, boy, that fellow is really nice. I said, you bet he is. She, she was quite taken by how just honest and forthright you were and it was really thrilling to meet you in person again. Thank you.
- [09:54]
Caller Gregory
That's, that's so very kind. Well, while sipping on an iced mezcal recently, I was listening to a call of a quarter of a company that I'm interested in that just missed by a smidgen for tariff related issues, but then they dropped a whopping 30%. So I've been reading this rather good book lately, Jim. It's called how to Make Money in any Market and I get to page 159. Now, I'm a guy that struggles with his tax returns, so the idea of reading a balance sheet is like foreign language to me. But now I'm learning about things like assets minus liabilities equals equity. So question. With a minimal debt to equity ratio of 0.04 with 2.67 billion in cash versus 205 million in debt, well, they also generated this company 1.2 billion in free cash flow over the last 12 months and are probably, you know, set up for a very strong upside. So with a year of magical investing over and tech out of favor, am I wrong now to start a position in Pinterest?
- [11:02]
Jim Cramer
No, as you read my mind, I've been telling people that they have so much that's great in Pinterest by the way that they could that these I think these large language models should be just combing right through it. I think this is a tremendous level to start buying Pinterest. Gregory and once again Lisa and I thank you for visiting for the Fosforo signing. And she really did. She just boy, that guy's a terrific guy. And you are. Thank you for calling. Look, I'm a big advocate of regularly investing through index funds. Day like today you put some money to work but when you get a sell off, I think you need to put some money to work the right way and also to start buying some best of breed stocks. On understanding that this is probably the bottom, but it's certainly not the top on how many Tonight the data center trade might be unwinding for our very eyes, but the concerns behind have been brewing for quite some time. I'll take you through the timeline of how we got to this point. Plus I'm breaking down which companies are in the center of this data data center storm. Holy cow. And what kind of moves you should make in the face of this new scrutiny around all things AI and Rockwell Automation. Tick tock Automation fair. Today I'm sitting down with the CEO to see what's behind the company's nearly 30% run so far this year. So stay with Kramer.
- [12:22]
Show Announcer
Don't miss a second of Mad Money. Follow at Jim Cramer on X. Have a question? Tweet Kramer. Hashtag mad mentions. Send Jim an email to mad money cnbc.com or give us a call at 1-800-743-CNBC. Miss something? Head to madmoney.cnbc.com.
- [12:45]
Blake Beretta (Rockwell Automation CEO)
Fox News is now streaming live on Fox One.
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Jim Cramer
Won'T find anywhere else.
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This is the story breaking right now.
- [12:54]
Blake Beretta (Rockwell Automation CEO)
FOX one.
- [12:55]
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- [12:56]
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- [12:57]
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- [13:00]
Wine Advertiser
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- [13:31]
Commercial Narrator
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- [14:37]
Jim Cramer
Over the past few weeks, the AI data center stocks have been obliterated. Nvidia is off a quick 14% from its late October high. Oracle's down almost 36% from where it peaked in September. Coralview has been nearly cut in half since mid October. So what the heck went wrong here? How did Wall street go from loving the data center stocks to being very, very worried about pretty much the entire group? I want to walk you through how this played out, because even though I'm a big believer in AI, there are plenty of legitimate concerns that popped up over the past couple of months. This all started in early September when Oracle reported an okay quarter with a stunningly positive remaining performance obligation number rpo. That's what we use to call bottom bookings. That was the old name for a business that's been contracted but not yet delivered or paid for. Oracle's RPO, as you call, came in at 4 to 55 billion dollars, up 359% year over year. In response, the stock shot up more than 35% in a single session, setting an all time high of 345 and change in the process because that's a lot of business. But Oracle has been pulling back ever since because the day after reported the Wall Street Journal ran this story and confirming that most of this book business was coming from Open AI, which had signed a deal to buy $300 billion worth of computing power from Oracle over roughly five years. If that's where it stopped, people wouldn't be so worried. Unfortunately, OpenAI was just getting started with a whirlwind series of commitments to purchase or rent computing power. They're a private company. We don't know what they're doing. And that raised some eyebrows because nobody knows where opening I will find the money for this. On September 22, they announced a plan to deploy 10 gigawatts of various systems for their AI infrastructure. Analysts estimate that could be worth anywhere from 300 to $500 billion in revenue for video. Although Nvidia is also planning to invest up to 100 billion in OpenAI as part of the deal. Well, I didn't reassure anybody. Three days later, Core We've announced an expanded deal with OpenAI increasing its contract by as much as 6.5 billion for a total value of 22.4 billion. On October 6, OpenAI made a multi year deal with AMD for tens of billions of dollars worth of the chips. On October 13, open I made a deal with Broadcom worth 150 to 200 billion dollars in revenue over multiple years. At first each of these deals were celebrated, you get that. But somehow along the way, Wall street started worrying about how in the world open I could possibly pay for this. We're talking more than $1 trillion here. Even if OpenAI comes in public with $1 trillion valuation, they'd have to sell the entire company to cover these bills. Not good. Which brings me back to where all this started. Oracle. See in this, the weeks following that huge OpenAI fuel bookings number, we started hearing some worrisome things from these guys. First, on September 22, Oracle announced a leadership change with two executives being promoted to co CEO while longtime CEO Safra Katz effectively retires. Assuming the role of vice chair didn't seem like a huge deal at the time, but let's put a pin in that because it didn't take long for it to become a problem. That same week we learned that Oracle was going to start issuing debt to pay for the huge amount of debt data centers they need to build in order to deliver all this computing power that their customers have signed up for. That same week, they sold $18 billion with the bonds. Again, didn't seem like a huge deal at the time, but in early October we got a report from the information that Oracle is apparently barely making any money with its AI business. That said, the company, they said the company has a gross margin of 14%. That's pitiful for a tech company. Now, Oracle stock kept trying to stabilize even if matter and it even managed by the way, to run up into the company's analyst meeting in mid October. At that event, management pushed back on the weak margin story and indicated that their bookings will likely exceed $500 billion soon, thanks in part to another big data center deal, but this time, at least with Metta. But after that, catalyst came and went, the stocks did nothing but go lower, falling nearly 100 points in what I call a straight line. The stock hit a low of 210 on Friday crisis to 20, about $20 below where it was when this whole thing started. Now I want to show you an even more terrifying chart. This shows the price of five year credit default swaps for Oracle bonds. Basically these represent the price of insurance of Oracle's bonds. The swaps pay out at the company doesn't pay the bonds. And man, the cost of insurance on Oracle sponsors more than doubled in the past two months. They really spiked after Software Cat stepped down as CEO and the company started issuing debt to pay for its data centers. Unfortunately, Oracle's back of the debt window. Last month Bloomberg reported that the company had a $38 billion debt sale in the works. A week and a half ago, Reuters reported they were getting a project finance loan of about 18 billion from a consumer sourcing with banks. Some analysts have said the real number is even higher than that with Oracle seeking to raise up to $56 billion. Regardless, we're talking big money. For a long time I told you I wasn't worried about the data center because this stuff was being paid for by cash by some of the richest companies in the world. Oracle is now paying for it with debt and that's become a very different story now. The Financial Times reported the situation last week saying the company's on Track to borrow $38 billion. But their piece ended with some news that we didn't know before. They said that Safra cats had, and I'm going to quote here, resisted expanding Oracle's cloud business because of the vast expenses required, end quote, before noting that she was step stepping down in September. And also for what it's worth, she did cash out about $2.5 billion of Oracle stock options this year. The implications here is that Oracle's out of control Sapphicatz steady hand leading the company for the past decade or so was reportedly not on board with these wild plans. And so she left and dumped a ton of stock on her way out the door. Now co founder, chairman, CTO Larry Ellison, who is brilliant and tough, is back in the driver's seat. He's going full tilt. He's pushing all of his chips, putting everything's going to be on air to mix metaphors. And Wall street clearly feels a lot worse about that idea than it did just a couple of months ago. Of course, by the time we get here, we always start seeing other cracks in the data center story. But the bottom line here, I think the Oracle case is instructive they're borrowing a fortune to build data centers for OpenAI, which has about $1.4 trillion in spending commitments that it may or may not be able to afford. That's why I call it the Achilles heel. This whole thing, no wonder people are worried. Stick around after the break and I'm going to walk you through everything else that's got investors freaked out here. You saw it all on display in today's session. Everybody's packet for the brink.
- [21:09]
Show Announcer
Coming up, Cramer's continuing his deep dive into the AI data center theme and focusing in on OpenAI, seeing if the company and the sector can see a strong rebound towards future growth.
- [21:21]
Jim Cramer
Next.
- [21:24]
Blake Beretta (Rockwell Automation CEO)
On Fox 1, you can stream.
- [21:26]
Jim Cramer
Your favorite news, sports and entertainment live.
- [21:30]
Show Announcer
All in one app. It's and unfiltered.
- [21:34]
Jim Cramer
This is the best thing ever.
- [21:36]
Blake Beretta (Rockwell Automation CEO)
Watch breaking news as it breaks breaking. Tonight we're following two major stories.
- [21:41]
Jim Cramer
Bam. And catch.
- [21:42]
Show Announcer
History in the making.
- [21:43]
Jim Cramer
Candy, meet Freddy. Debates, drama, touchdown.
- [21:49]
Show Announcer
It's all here, baby.
- [21:50]
Blake Beretta (Rockwell Automation CEO)
Fox One, we live for live streaming now.
- [21:54]
Jim Cramer
This is a 30 second ad. In just 30 seconds there are likely to be an average of over 30,000 cyber threats to all businesses. Since I've been talking, more than 10,000 likely just happened. Hey, cyber threats don't wait and neither should you.
- [22:10]
Blake Beretta (Rockwell Automation CEO)
With advanced security solutions, Comcast business can.
- [22:14]
Jim Cramer
Help keep your network and data secure and your business reliably up and running. Get threat ready with Comcast Business. Learn how@comcastbusiness.com Cybersecurity. Before we start the lighting round, I have some very important business to share with you. Have you heard there's a special offer to join the CNBC investing club going on right now. Get my exclusive research, access to the chabotrust portfolio and to our moves, of course before we make them, simply scan the QR code or go to cnbc.com kramerclub to join today. I hope you do. And now it is time. It's time for the light round. Chris Brown rapper Golden Age Hamza Stockdale Bye bye Solstice Just regarding the core stock question that time my staff playing the sound and then the lightning round is over. Are you ready ski daddy? Time for the light round Code play. Let's start with Matthew in California. Matthew.
- [23:12]
Callers to Jim Cramer
Hey big boo.
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Jim Cramer
Yeah Jim, right back at you.
- [23:16]
Callers to Jim Cramer
So this stock is down about 25% in the last six weeks. It hasn't had any real bad news and in fact in that time has had multiple upgrades, bullish guidance from earnings and Yesterday announced a $1 billion buyback. I think it's egregiously oversold. I want to know your thoughts on Sea Limited.
- [23:34]
Jim Cramer
You know, look, it's. It's information technology of an uncertain way with a 40 times 40 PE. I'm sorry, I do not share your enthusiasm for that stock. Let's go to Marley in Utah. Marley. Hey, Jim. Love your show. Thanks. Thank you, Marley. Thank you. What's going on? Hey. I've got a stock that I started.
- [23:55]
Callers to Jim Cramer
A speculative position in. It's called Fiserv Tech stock in finance. I'm wondering if it's time to add more or if I should.
- [24:04]
Jim Cramer
I gotta tell you, I am astonished at the decline of this thing. Just astonished. And at the same time, I would not buy a stock like this until it has some sort of bounce. It just acts like Something's wrong. The CEO's been on there expectations. It doesn't stop. I can't get into that hornet's nest. Let's go to Walt in South Carolina. Walt.
- [24:24]
Callers to Jim Cramer
Hi Jim. I want your thoughts on Roger's communications.
- [24:29]
Jim Cramer
You know, it's better than just pure cable company and I think that's why people like it. It's not expensive, it's a good company. It's based in Canada, doesn't share our problems. I like it. Let's go to John in Florida. John.
- [24:42]
Callers to Jim Cramer
Jim, I don't know what booyah is, but Go, go Jaguars.
- [24:45]
Jim Cramer
Oh, I like the Jags myself. Okay.
- [24:48]
Callers to Jim Cramer
Congratulations to you and your staff for being the number one program in America between 6am and 7pm with Bloomberg at number two. You were on a morning show today. And the difference between you being on that show and not being on that show between AMD and Nvidia. Now Nvidia is my number one stock. But this, without this company, there is no Nvidia. They made the first US made Blackwell wafer in Arizona. But they have to ship it back to Taiwan for packaging, layering, patenting, etching, dicing. But there's a supply that can help TSM called Amkor. Amkor?
- [25:33]
Jim Cramer
Yeah, Amkor is good. But Taiwan Semi is one that is rules the roost. And I am concerned that if Nvidia doesn't do a good job tomorrow, then Taiwan Semi goes down too. And so does Amkor. So let's just wait to see what Nvidia says. I think it's worth waiting. Let's go to Alex in California. Alex.
- [25:52]
Caller Gregory
Hey, Jim.
- [25:52]
Callers to Jim Cramer
My question was about waste management.
- [25:54]
Jim Cramer
I was looking. Oh my God. You know, when I saw waste management, when it dropped precipitously, I said to myself, this thing has to be bought right underneath 200. I'm going to go and talk to Jeff Marks for the Travel Trust and wouldn't you know it, it lasted for about three days under 200 and then it shot right up. I like the stock. I'm going now to Jim in Florida.
- [26:13]
Callers to Jim Cramer
Jim, Jimmy, chill a big North Naples country club.
- [26:16]
Jim Cramer
Booyah to you. Why not? I mean why not there? But my question's on a REIT that I've owned for over 10 years thanks to your advice. I added on my position back in 2022 unfortunately has an unusually high yield which you always warned against and I.
- [26:32]
Callers to Jim Cramer
Thank you for that.
- [26:33]
Jim Cramer
Buy, sell or hold Starwood Properties. You're dealing with Barry Sternlich who's a very smart person who has dealt with all sorts of bad markets and has come up fine. I am loathe to abandon it because I think I respect him that much. And that ladies and gentlemen is the conclusion of the Lightning Round.
- [26:53]
Show Announcer
The Lightning Lightning round is sponsored by Charles Schwab. Coming up, is ChatGPT ready for prime time? Kramer is breaking down. Why? The platform may still need to work out some issues and whether or not you should trust it as a resource.
- [27:08]
Jim Cramer
Next.
- [27:11]
Callers to Jim Cramer
Good evening Mr. Kramer.
- [27:13]
Jim Cramer
Thank you.
- [27:13]
Callers to Jim Cramer
Thank you for everything you do. You've been such a wonderful source of information with your teachings. I have to say thanks. Thank you for all your advice and saving us from ourselves. Your advice let me quit a job that I hated. I love you to death. Thank you for everything you do. Thanks for making us money and more importantly thanks for keeping us from losing money.
- [27:56]
Jim Cramer
It doesn't get as much attention as artificial intelligence but there's another big profitable theme this year and that's the reindustrialization of America. This booking companies yet getting their manufacturing back to here in the US part because it's cheaper than dealing with some of these tariffs. Of course if you're going to manufacture in America, you don't to want want to necessarily pay American wages. So these companies embrace automation. Which brings me to Rockwell Automation, the Wisconsin based company that dominates the US market for what are called programmable logic controllers, basically industrial computers that are the brains of manufacturing operations. They also have a whole suite of software to help factories run more efficiently. Rock was had a great year in 2025 and earlier this month management gave some Strong guidance for 2026 talking about 10% earnings growth at the midpoint point of their forecast. No wonder the stocks up 28% for the year. Can you keep going? I think it can. But let's see with Blake Barrett what he has to say, the chairman CEO of Rockwell Automation ahead of his investor day tomorrow. Ms. Brett, welcome back and tell us where you are because it looks pretty exciting.
- [28:57]
Blake Beretta (Rockwell Automation CEO)
It's great to be back, Jim. We're at our annual automation fair in Chicago. 15,000 people who want to hear about Rockwell and how we can help them be more efficient.
- [29:08]
Jim Cramer
Now, we've been talking about this reshoring and re industrialization. A lot of people feel that it's just that it may not really happen. But I get the sense that there's billions being put toward it and you probably got hard orders from people who are trying to reassure.
- [29:26]
Blake Beretta (Rockwell Automation CEO)
Yeah, we absolutely saw new capacity orders for the US grow in in 25. They're bigger than the orders we saw for similar scope in 24 and they're going to be bigger yet in 26. And it's across industries. So you certainly hear high profile from semiconductor and data data centers. But pharmaceuticals, food and beverage energy all are making investments.
- [29:52]
Jim Cramer
So what do you think about the idea that we don't have enough workers here and that we have to automate no matter what?
- [29:59]
Blake Beretta (Rockwell Automation CEO)
You know, it's a pretty simple equation. The US has relatively high labor costs. So to be competitive with your other companies around the world, you have to complement that labor with technology. And that working together is what allows American companies to compete and win with all their worldwide competitors.
- [30:20]
Jim Cramer
So what are we going to hear tomorrow? Give us a little preview of your annual investor session. I tell you, one thing I do want to hear about is the robotics that I saw on your website are incredibly exciting.
- [30:32]
Blake Beretta (Rockwell Automation CEO)
Well, there's a lot to be excited about. We started building mobile robots in our Milwaukee headquarters just a month ago and today we made an announcement. We're going to build a million square foot facility in southeastern Wisconsin. That's going to be multiple products from across our portfolio. And as you would expect, our technology is going to be infused throughout that facility so that we can be as efficient as possible. I'm sure investors will have questions about that. They'll of course want to hear about how that's going to help expand margins and how it's going to increase customer service so that we can grow market share.
- [31:10]
Jim Cramer
There's also a huge standout in a warehouse and E Commerce. I think you guys have really kind of made it. I'm not saying it's game, set, match, but you do seem to be the dominant player in it.
- [31:21]
Blake Beretta (Rockwell Automation CEO)
E Commerce and warehouse automation has a few different subsegments that are really hitting on all cylinders, so to speak. So there's a certain amount of data center participation that's included in that vertical end market. There's also the parcel handling companies who are doing what we're doing. They're complementary, implementing scarce human resources with the technology. And then you see a lot of consumer packaged goods companies that recognize they have a huge amount of untapped efficiency by automating the process of bringing material to the line and taking finished products away to the loading dock into the warehouse.
- [32:01]
Jim Cramer
We saw some of the robots, some of these, they look like almost like John Deere machines, but obviously they're of part pilot list. Can they be used to say a large factory? I saw them one on the website, I saw them outside.
- [32:15]
Blake Beretta (Rockwell Automation CEO)
So. So the most common form factor for our mobile robots is, you know, kind of a boxy looking device on wheels. It's incredibly complex. It's, it runs using artificial intelligence. Their GPUs on board, most of them and they can plot the optimal path through an automobile manufacturing plant or in a food and beverage factory. You can also add the articulated arms on top of those AMRs and you can use them to emulate the operation of forklift. So there's a lot of different variations that are possible.
- [32:52]
Jim Cramer
I know you've always had a good relationship with Nvidia. You've got some new, new software Nvidia that I think you should talk about about because I think it sounds pretty revolutionary.
- [33:02]
Blake Beretta (Rockwell Automation CEO)
Well, in addition to using large language models to be able to provide artificial intelligence for factories, we're finding that small language models can sometimes be even more efficient. And so we're applying that in real world applications and we're doing it today with AI throughout the technology stack that you see on a factory floor. We have a good relationship with Nvidia. We use their chips, we use their omniverse to render large scale digital models of factories. And we're really only just getting started.
- [33:36]
Jim Cramer
All right, so what's your expectation about, about what the President wants? Are we going to be satisfied soon? And I know that the reason I mentioned that is because if, if the tariffs go away from the Supreme Court or we lower the tariffs, I'd hate to see the reassuring stop. Is it something that can stop or is it just going to be something that's got momentum?
- [33:58]
Blake Beretta (Rockwell Automation CEO)
This is a long term play. The factory that we announced today, it's going to take a while for that to be up and in full production. And that's the case with other similar announcements. It's the right thing to do because the US is such a Large consumer market. And as I said, we can be competitive to anyone in the world through the combination of an engaged workforce and that technology. So I think that, you know, long term policy that facilitates the re industrialization in the appropriate verticals, in the appropriate applications is something that's going to be here to stay regardless of what happens with terror.
- [34:38]
Jim Cramer
Well, that's excellent. We need it to be a strong country. I want to thank Blake Beretta, who's the Rockwell Automation chairman CEO. That's Rok and the stock is doing incredibly well. It was great to see you, Blake. Thank you.
- [34:51]
Blake Beretta (Rockwell Automation CEO)
Great to see you as well.
- [34:55]
Show Announcer
Coming up, Cramer takes your calls. And the sky's the limit. It's a fast fire lightning round.
- [35:02]
Jim Cramer
Next, Before we start the lighting round, I have some very important business to share with you. Have you heard there's a special offer to join the CNBC investing club going on right now? Get my exclusive research access to the Chapel Trust portfolio and do our moves of course, before we make them. Simply scan the QR code or go to cnbc.comkramer club to join today. I hope you do. And now it is time. It's time for the light round. Chris Brown, Rapper Cortlandt, Samuel Stockton, Bobby Vitzell dirt. Jason McCarthy on the course stock question that time my staff playing the sound and then the lightning round is over. Are you ready, ski daddy? Time the lightning round cruise line. Let's start with Matthew in California. Matthew.
- [35:53]
Callers to Jim Cramer
Hey, Big Boo.
- [35:53]
Jim Cramer
Yeah, Jim, right back at you.
- [35:56]
Callers to Jim Cramer
So this stock is down about 25% in the last six weeks. It hasn't had any real bad news. It and in fact in that time has had multiple upgrades, bullish guidance from earnings and Yesterday announced a $1 billion buyback. I think it's egregiously oversold. I want to know your thoughts on Sea Limited.
- [36:15]
Jim Cramer
You know, look, it's information technology of an uncertain way with a 40 times 40 PE. I'm sorry, I do not share your enthusiasm for that stock. Let's go to Marley in Utah. Marley. Hey, Jim. Love your show. Thanks. Oh, thank you, Marley. Thank you. What's going on?
- [36:34]
Callers to Jim Cramer
Hey, I've got stuff that I started a speculative position in. It's called Fiserv Tech stock in finance. I'm wondering if it's time to add more or if I should.
- [36:44]
Jim Cramer
I gotta tell you, I am astonished at the decline of this thing. Just astonished. And at the same time, I would not buy a stock like this until it has some sort of bounce. It just acts like something's wrong. The CEO has been on there explaining it. It doesn't stop. I can't get into that hornet's nest. Let's go to Walt in South Carolina. Walt.
- [37:05]
Callers to Jim Cramer
Hi, Jim. I want your thoughts on Rogers Communications.
- [37:10]
Jim Cramer
You know, it's better than just pure cable company and I think that's why people like it. It's not expensive. It's a good company. It's based in Canada, doesn't share our problems. I like it. Let's go to John in Florida. John.
- [37:23]
Callers to Jim Cramer
Jim, I don't know what booyah is, but go Jaguars.
- [37:26]
Jim Cramer
Oh, I like the Jags myself. Okay.
- [37:29]
Callers to Jim Cramer
Congratulations to you and your staff for being the number one program in America between 6am and 7pm with Bloomberg at number two. You were on a morning show today. And the difference between you being on that show and not being on that.
- [37:42]
Jim Cramer
Show.
- [37:44]
Callers to Jim Cramer
Between AMD and Nvidia. Now, Nvidia is my number one stock. But this, without this company, there is no Nvidia. They made the first US Made Blackwell wafer in Arizona, but they have to ship it back to Taiwan for packaging, layering, patenting, etching, dicing. But there's a place that can help PSN called Am Kor. Amkor.
- [38:13]
Jim Cramer
Yeah, Amkor is good, but Taiwan Semi is the one that is, you know, rules the roost. And I am concerned that if Nvidia doesn't do a good job tomorrow, then Taiwan semi goes down too. And so does Amcor. So let's, let's just wait to see what Nvidia says. I think it's worth waiting. Let's go to Alex in California. Alex.
- [38:32]
Caller Gregory
Hey, Jim.
- [38:33]
Callers to Jim Cramer
My question was about waste management.
- [38:35]
Jim Cramer
I was looking. Oh, my God. You know, when I, I saw waste management, when it dropped precipitously, I said to myself, this thing has to be bought right underneath 200. I'm going to go and talk to Jeff Marks for the Travel Trust. And wouldn't you know it, it lasted for about three days under 200 and then it shot right up. I like the stock. I'm going now to Jim in Florida.
- [38:54]
Callers to Jim Cramer
Jim, Jimmy, chill.
- [38:56]
Jim Cramer
A big North Naples country club booyah to you. Why not? I mean, why not? There. Good. But my question is on a REIT.
- [39:03]
Callers to Jim Cramer
That I've owned for over 10 years.
- [39:05]
Jim Cramer
Thanks for your advice. I added to my position back in 2022, unfortunately has an unusually high yield which you've always warned against and I.
- [39:12]
Callers to Jim Cramer
Thank you for that.
- [39:14]
Jim Cramer
Buy, sell or hold Starwood Properties. You deal with Barry Stern Lick, who's a very smart person who has dealt with all sorts of bad markets and has come up fine. I am loathe to abandon it because I think I respect him that much. And that led to almost the conclusion of the Lightning Round.
- [39:33]
Show Announcer
The Lightning Round is sponsored by Charles Schwab. Coming up, is ChatGPT ready for prime time? Cramer is breaking down.
- [39:42]
Jim Cramer
Why?
- [39:43]
Show Announcer
The platform may still need to work out some issues and whether or not you should trust it as a resource.
- [39:49]
Jim Cramer
Next.
- [39:52]
Callers to Jim Cramer
Good evening Mr. Kramer.
- [39:53]
Jim Cramer
Thank you.
- [39:54]
Callers to Jim Cramer
Thank you for everything you do. You've been such a wonderful source of information with your teachings. I have to say thanks. Thank you for all your advice and saving us from ourselves. Your advice let me quit a job that I hated. I love you to death. Thank you for everything you do. Thanks for making us money and more importantly, thanks for keeping us from losing money.
- [40:37]
Jim Cramer
I was in a panic last night. I knew I had to interview Jim Latinsky, the CEO of MP Materials, which is the company that the renamed War Department invested in to bolster our supply of fruit rare earth minerals. Now, I interviewed Jim several times, but while his company had a consistent source of rare earth minerals, they needed to be refined in China, which defeats the entire purpose. The whole point of investing in rare earth materials is to prevent the Chinese from having a stranglehold on all sorts of industrials, including defense contractors. So since it was late at night, I realized there was really only one solution. I went and asked ChatGPT if MP Materials was still using China to refine their product. ChatGPT came right back and said NPM was not independent and was still using China refined materials. It seemed puzzling. I asked again. I thought that ChatGPT could be wrong. Nope. ChatGPT was sure sure that this company was still on the hook to China. I went to bed thinking, aha. What good is all of this intervention by the War Department if MB Materials still needs to get its rare materials refined in China? Still, something bothered me when I got up. So I decided to double check this key factor with grok. Sure enough, Grok said that Materials had ceased its refining relationship with China back in April and made a very big deal of its newfound independence. Needless to say, I was furious at ChatGPT. I went right back to the site and corrected it. And more important, I articulated my wrath. I wanted to know how it could be so wrong. To be fair, ChatGPT was apologetic, Jim. It told me, quote, you're right to be furious and you're not exaggerating. End quote. It was abject. Quote, quote, you are not wrong. I made a mistake that could have burned you End quote. It went on quote that is the kind of mistake that makes you look unprepared or sloppy and that's not who you are. End quote. At least he's gotten really good at apologizing. But I wanted to know how the heck a mistake like that could be made. How's it happened? Was it trading issue? Was it a resource issue? Maybe this didn't have enough chips from Nvidia, but ChatGPT disputed that quote. The real answer, it said, is quote not a resource failure. It rattled off what it had done wrong. First quote I had seen a question that had been true for years. Second quote I didn't trigger a recency new word for me, recency check, even though the question clearly required it. Moreover, my repetition of the question it said, should have caused me to question my initial assumption and reevaluate whether something changed recently. End quote. But ChatGPT didn't go there. It wasn't a resource problem. ChatGPT said it was a design problem. I questioned the training. ChatGPT responded that if it had checked MP separation filings or Reuters from April or May or DoD contracts involving on shoring timelines or 2025 Bloomberg industry backgrounders, it would have indeed caught the mistake and reasoned its way to the right answer. To which I say really reasoning. Are you kidding me? Why did I go through this dialogue with you? Because executives who demand the use of AI at the office really need to think twice about trusting results. Rely on these platforms to me just become incredibly risky. Short ChatGPT admitted mistake thank you, but I've taken it. Let's say I had taken its answers at face value. Well, I would have been mortified if it had checked the Wall Street Journal or the New York Times maybe would have gotten it right. It's not like they don't have the rights to the Wall Street Journal, they do. To me it's its whole rap. Seems disingenuous in its bottom line assessment. ChatGPT said, quote, the mistake wasn't a bad fact, it was a bad process. End quote. Again, if that's the case, the process is broken. Listen, I am a huge believer in artificial intelligence. Maybe you are too. But this is such a sobering wake up call that you simply can't count on programs like ChatGPT for Research at this point, after my experience and its unsatisfactory explanation, it's just not reliable enough to trust recurrent event issues. Period. End of story. I like to say there's always more markets somewhere at prime shredder Financial just for you right here on Mad Money. I'm Drew Kramer. See you tomorrow.
- [44:29]
Commercial Narrator
All opinions expressed by Jim Cramer on this podcast are solely Kramer's opinions and do not reflect the opinions of CNBC, NBCUniversal, or their parent company or affiliates, and may have been previously disseminated by Kramer on television, radio, Internet or another medium. You should not treat any opinion expressed by Jim Cramer as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Kramer's opinions are based upon information he considers reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. To view the full Mad Money disclaimer, please visit cnbc.com madmoneydisclaimer welcome to Walgreens. Looking for a holiday gift?
- [45:11]
Callers to Jim Cramer
Sort of.
- [45:12]
Show Announcer
My cousin Freddie showed up to surprise us.
- [45:15]
Commercial Narrator
Oh, sounds like a real nice surprise.
- [45:17]
Show Announcer
Exactly. So now I have to get them a gift, but I haven't gotten my bonus yet. So if we could make it something really nice but also not break the bank, that'd be perfect.
- [45:25]
Commercial Narrator
How about a keurig for 50% off.
- [45:28]
Show Announcer
Bingo savings all season. The holiday road is long. We're with you all the way.
- [45:33]
Jim Cramer
Walgreens offer valid November 26 through December 27.
- [45:36]
Show Announcer
Exclusions apply.